Grayscale said Zcash’s shielded transactions could be beneficial, as users seek stronger privacy protections.
- Zcash posted its best monthly gain since October 2025 as interest in privacy-focused crypto picked up.
- Grayscale said AI could drive a new wave of demand for financial privacy across the economy.
- The firm warned that AI may make it easier to link public blockchain activity with real-world identities.
Zcash (ZEC) is on track to deliver its best monthly performance since October 2025, with Grayscale Investments stating on Monday that the rise of artificial intelligence (AI) could trigger a new wave of demand for financial privacy and benefit privacy-focused cryptocurrencies.
Zcash surged roughly 78% over the past month, making it one of the cryptocurrency market’s stronger performers. While its monthly gains remain well below the nearly 400% spike seen during the October rally, the latest price action marks a sharp turnaround, especially as the broader crypto market has remained muted.
ZEC’s price was down over 4% in the last 24 hours. On Stocktwits, retail sentiment around ZEC remained in the ‘bullish’ zone, while chatter stayed at ‘high’ levels over the past day.
Grayscale Sees AI Driving A New Privacy Wave
Grayscale said mainstream attention to financial privacy has historically occurred in waves driven by technological change. The first wave hit in the 1970s with the computerization of financial records, and a second wave was driven by the rise of the internet in the 1990s and rising concerns over online privacy. Zach Pandl, Grayscale’s Head of Research, said a third wave may be underway, fueled by artificial intelligence.
Grayscale said that AI tools are likely to necessitate new privacy protections across many parts of the economy. He also said that this problem might be especially important for public blockchains, where transactions are open by default.
Every exchange on a network like Bitcoin (BTC) is written down on a public ledger. Grayscale warned that AI could make it easier and more common to connect information off-chain to activity on the blockchain. This could lead to better ways to find and label user addresses.
Why Zcash Could Benefit From Rising Privacy Demand
Grayscale noted that Zcash’s shielded transactions use zero-knowledge cryptography to hide both the addresses that are transacting and the amount that is being moved. This could make privacy a "must-have" feature for users who are worried about how easily surveillance is growing.
Read also: Nakamoto CEO David Bailey Says Bitcoin’s Corporate Turn Isn’t A ‘Betrayal’ – Eyes Bigger Push Into M&A
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